How to start a credit repair business

How To Start a Credit Repair Business

Sometimes no matter how people keep their credit records clean, there are incidences that may suddenly happen and put a negative mark on their credit history. Identity theft and improper recording by the credit agencies are just some of these. Such an incident should be addressed immediately if the affected persons want to clean up their record in time for a loan application or refinancing for instance. However, the process of credit repair is an arduous task. This is why many credit businesses are sprouting these days to give a solution for these people. They take charge of processing the credit repair and they are paid a fee for the service. Even you can start your own credit repair business. If you happen to have the time that other people do not have to clean up their credit records, you can do this for them from the comfort of your home. Here are the steps in starting this low capital, high-income business.

How to Start Your Own Credit Repair Business

Educate Yourself

Before you help repair the credit records of other people, you must first know how it is done. You can enroll in credit courses offered by local colleges or you can attend seminars provided by banks. The internet is also teeming with information in the form of eBooks or other downloadable files that can provide information on how to repair credit. Another source of information would be financial experts, like accountants and bankers. You may also contact the different credit bureaus to learn more about their current procedures in requesting for reports, filing disputes, and accessing information.

Take time to study the procedures that are followed for credit repair and once you are done studying, put it into action. Start with yourself. Try to get a copy of your credit report from the different credit bureaus and scan through them. Practice what you have learned from the seminars and your other resources, and see if you can detect any irregularity on your own report. You may be surprised to see that even you may need a credit repair. That would actually be great because you can assess for yourself how good you are at processing a credit repair by having yourself as your first client.

Register the Business

Starting a credit repair business will not cost you more than $500, so most of your problem during registration would be the tedious process of making it legal. First, decide on a name for your business. Credit repair is not an entertainment business, therefore come up with a name that has a professional sound so that future clients will learn to trust you. Second, decide on what form of business entity you want to have. Incorporating your business would be a wise move if you want to separate your personal assets from your business assets. Third, ask for information regarding local state requirements in starting a credit repair business. You need to acquire a license and a certificate to be able to run this business legally. Fourth, find an office space or you may opt to run the business from your home and just scale it up later. You have to remember that even if you start this as a home business you may still need to acquire a permit from a local agency.

Connect with Credit Bureaus

Your work will run smoother and faster if you know whom to talk with at the different credit bureaus. Therefore, take time to get the names of the managers and supervisors who usually handle these disputes and form a professional relationship with them. They can be great sources of information too in case there are changes done in the credit repair procedures that you need to know about. Be professional with your dealings with them. Give them a copy of your calling card to formally introduce yourself as a liaison between the people who are having problems with their credit reports and the bureaus.

Professionally Manage Your Business

Even if you decide to work at home, keep a goal of achieving a professional environment to gain the trust of your clients. You can allot a room in your home as your home office where you can meet clients in person. Dress in proper attire when discussing credit repair problems.

Make all your correspondences professional as well. For instance, create a template of your request and dispute letters for the different credit bureaus. This will make your work easier and credit bureaus are likely to respond to letters that are properly drafted.

Keep a proper recording of all your transactions. Make computer files that will help you access all information related for each client and back this up to prevent loss of data. Better yet, you may opt to use a software that was dedicatedly developed for credit repair businesses. Once you are dealing with multiple clients, you may find yourself drowning in tons of data and mistakes could happen. Prevent that by maintaining an organized filing system.

Remember to put everything in writing. Every client should be provided a contract that details the scope of your job, the fee for your services, and your commitment to finish the task.

Market Your Business

Just like any business, you need more clients to prosper and earn. At the moment, credit repair businesses charge about $50 per client per month. If you are able to get 100 clients, that is an instant $5000 monthly earning for you, but how and where can you get these 100 clients? There are many ways. For a start, you can build your website that shows a summary of the services you offer and the commitment that you are willing to provide to your clients. You can create a blog site along with it, where you can post articles and news about the credit industry. This will boost your authority on the subject matter and make people trust your capabilities. You may even conquer the social media. Create a page there that will direct hundreds or thousands of followers to your website. If you want a more aggressive campaign, you may even try to pay for ads, both online and offline.

As you can see, starting your own credit repair business is not that difficult at all, especially if you are up to the challenges of learning this niche. There may be struggles at the beginning, but once you get going and once you made a reputation for yourself, things would start to run smoothly.




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